Blockbuster, the movie-rental company giant, has filed for Chapter 11 bankruptcy. The move allows the company to secure $125 million in debtor-in-possession financing to help keep operations stable while the reorganization takes place.In the Thursday announcement...
Chapter 11 Bankruptcy
Nexity’s Holding Company Files for Bankruptcy
Bloomberg reports that Nexity Financial Corp. has filed for bankruptcy. According to Bloomberg, “The Birmingham, Alabama-based company listed both assets and debt of as much as $50 million today in Chapter 11 documents in U.S. Bankruptcy Court in Wilmington,...
Bankruptcy judge requires Texas Rangers to change bankruptcy plan
The Texas Rangers’ reorganization plan was challenged in bankruptcy court earlier this week. According to court reports, a bankruptcy judge said that while the lenders cannot veto a sale they do have a say in the sale process.As a result of the ruling, the current...
Corus Bankshares Inc. files for Chapter 11 bankruptcy
Corus Bankshares Inc. filed for Chapter 11 bankruptcy earlier this week. According to court reports, the case was filed in the Northern District of Illinois Bankruptcy Court.Corus Bankshares Inc. was a holding company that had its bank transferred to MB Financial Inc....
Pacific Ethanol subsidiaries releases reorganization plan
Pacific Ethanol subsidiaries will emerge from bankruptcy. According to court reports, the subsidiaries of Pacific Ethanol, Inc. will reorganize as Pacific Ethanol Holding Co., LLC.The reorganization plan was approved by the firms’ secured lenders. The plan will...
Midway Games reaches agreement with creditors’ committee in Chapter 11
Midway Games continued its liquidating Chapter 11 plan this past week. According to court reports, the company’s creditors’ committee agreed to settle claims against the company’s owner Summer Redstone.The settlement will likely allow unsecured creditors to recover 25...
Movie Gallery Inc. to shut down operations
The Wilsonville, Ore.-based Movie Gallery Inc. announced plans last Friday to close the remaining 1,900 Hollywood Video stores and liquidate its operations in the U.S.The company filed the notice in the U.S. Bankruptcy Court for the Eastern District of Virginia in...
Six Flags recovers from bankruptcy
New York City-based Six Flags Inc. this week emerged from Chapter 11 bankruptcy with the backing of a new shareholders group. The company, which owns the amusement parks of the same name, will now be known as Six Flags Entertainment Corp. following the $725 million in...
National mall operator emerges from bankruptcy
General Growth Properties Inc., the nationwide mall operator, filed a motion to emerge from Chapter 11 bankruptcy last week with a federal bankruptcy court in New York.The Chicago-based mall operator has received a $6.55 billion investment from Fairholme Capital...
How should you manage your corporation during bankruptcy?
Members of corporate boards are often conflicted during company bankruptcies. While they often focus on increasing shareholder value during normal times, they are required to pay off creditors and adhere to bankruptcy law during a bankruptcy process.This change in...